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How to pay tax on internet earnings from abroad
How to pay tax on internet earnings from abroad. This question is unclear to many, especially the web entrepreneurs who for various tasks over the Internet receive payments from foreign companies, whether in the form of checks
Why do pay taxes on internet earnings
1 There are many different answers and opinions on this issue. I everything, but what is that, for each completed job you get paid at all, it is necessary to pay taxes because everything else is working illegally. What makes us, internet entrepreneurs, different from others, is that for all we earn a clue. Or get a check to take away the bank, that there are accounts or get a direct payment to the foreign currency account, which is again even reported to the National Bank of Serbia. Those who think they do not paying taxes are doing the smart thing, I think you are wrong. It is true that the whole apparatus of our country does not work best and to taxpayers struggling with other problems ie. do not have time to deal with us, but when things in our country lead in the red - who know when, but it will come to - they will all be very much obliged to the payment received for each pay taxes. My advice to everyone is not Cakaj that day, but to immediately change their habits, because if and when taxpayers find something that is not legally have every right to retrospective penalties and charges. second pensijsko paying contributions and disability insurance provides income for themselves a certain future, when you get older. I know someone will say, well us the whole pension system is in shambles, is about to fall apart. But Days and years pass, and the system still works, retirees receiving pensions. Im so ready to take the chance and wait for the day when I will be sposobodan to do, and I do not have any income. third payment of social insurance you are eligible for a health card and the possibility of treatment in public hospitals. You never know when you might need. 4 Social moral responsibility in our country is very low. Everyone knows how to talk individually to change their habits and beliefs. This is just one way to do that. When all citizens would first regulate their obligations, rather than looking at someone elses and then we would all be better off together. What we also know is that many people avoid paying taxes because there is insufficient information on the subject, or which have yet to be address. why I am writing this guide, so I tried to remotely literate internet community on the subject. At first glance will be written down instructions to make a long and complicated, but trust me, once you have completed the whole thing, everything will go very fast.
Receiving payments from overseas remittances
shall mean any payment in foreign exchange currency into your account or company check. you could receive payment for any reason from a legal person from abroad, or for programming or any other kind of work, services and promotions. Because you paid money entity that is not registered in our state, subject to taxes and contributions to our country is the recipient of funds ie. you. There are two cases of receiving money, and that is when you receive it as a physical Person - an individual - or a legal person - company -, but the second case has the option when it comes to entrepreneurs. I will be more in this article address this case first, because I belong to it, and if anyone has something to add the second case, let it do so freely in the comments. contract. but here comes the first small problem. In an interview with the tax officer, I learned that for any job that is done there must be a contract - logical, right? - and it must have the documentation for each case. contract is written proof of the details of employment firms and workers. But how do you ask Google or some other companies in the U.S. this contract? Enough I inquired about this, and even wrote to Google -and the companies we work with but all in wonder odgovorali to have no idea what it is. Referrals me to its Terms of Service - Terms and Conditions or the Terms of Service -. In fact, on any remotely serious site should become of these Terms -i and an agreement that in a world where there is no law about internet business. So we finally left only to print the existing contracts with sites and store them in the documentation. Thats what I did. Heres a link to the Google contract a program for your Adsense earnings. Note that there is a Serbian version, and it should be printed.
Addendum: I just read the new law on electronic commerce, which are regulated by rules of contracts by electronic means, which is confirmed to us by contract is sufficient and electronic documents - Terms and Conditions - which spominjen in the previous paragraph.
natural person - foreign currency income to the account and checks
export earnings, payments on account. If you received a payment through a foreign exchange account, the bank will notify and depending from bank to bank, or you will asked to sign a receipt of payment or seek some sort of proof of payment - on what basis is receiving and from whom -. I personally happen to my bank statement next to the payment by the sender and seeks agreement on the details of work between the company I work for myself. Again the agreement? The bank told me that he needed because they are required by law to somehow justify the payment of foreign exchange. I printed out for them, a version of Terms and Conditions document from the website of the company. That was enough. Checks. If you have received payment through checks - the banks they were commonly called the Company - need to take your check to the bank, and depending from bank to bank, the amount will be credited to the account immediately or after 4-5 weeks. This wait is woefully all liabilities, sometime due to the amount of money that is received, and sometimes because the checks do not actually factual value, until the charge, and properly called cash equivalents . Once entered in the accounts paid under the Law on Personal Income Tax are required following if you are a resident of the Republic of Serbia: - note that a citizen and resident is not the same thing, it is considered a resident of certain states, if the fiscal year reported a legal residence in a given state for more than 183 -: To
within 8 turns on the Tax Office in the municipality in which you have registered residence in the Republic of Serbia, the OPO PP form in two copies of incoming foreign payment. Along with this form should be accompanied and bank statement from which to see how the figure paid for, and the date when the funds are credited to the account. Tax Office will verify this in the form - and stamped with a code - one copy to keep for themselves, while others return to you, you must keep it in its documentation the next ten fiscal years as required by the legislation on the retention of financial documents. revenue through OPO PP form may sign up as:
1 Income from royalties. Such income is usually reported when in terms of payments in respect of programming / production of computer programs, because it is an intellectual services - the program is protected by copyright laws and rights -. only parameter that must be met in this case is that you must have a VI or higher level of education . ie. to have completed at least a high that is. High School.
2 Revenue from service contracts. All other payments reported as part of the contract which has a somewhat less favorable odds for determining the basis for the calculation of taxes and contributions. If you received a payment as an individual, and you are employed in the Republic of Serbia with an employer then you are obligated to pay royalties if: posted a. the 20% tax on the taxable amount minus the normalized cost of 43% for that type of work
b . contribution to the pension fund from 22% to the base minus the normalized cost of 43% for that type of work
this case you reject your net cost will be equal to 0.7606 * GROSS. In the case of part pay: 1
. the 20% tax on the taxable amount reduced by 20% of standard costs
second contribution to the pension fund from 22% to the base reduced by 20% of standard costs
So you will in this case the expenses will be slightly higher, Net = Gross 0.664 * In case you are unemployed, in addition to taxes and contributions for the pension fund, it is necessary to pay the health insurance contribution of 12.3% on the base for Social Security. This will gain the right to health card that is. treatment in the health system institutions financed from the Fund HIF - Republic Health Insurance -. / ul Taxes and contributions are credited to the appropriate revenue accounts, with appropriate reference number. about this later. tax can still be reduced by a tax that is payer - a company from abroad - to a given payment paid to his country, but you must send a confirmation of how exactly they paid taxes in your country for you, your certified with a stamp and signed by them. basically, forget about this step: -. When you Tax Administration made the certification OPO PP form and get a certified copy, please fill in the UN and the M-form in two copies, which, with supporting documents, certified OPO PP form and proof of payment of pension fund contributions submitted to the Pension Funds branch you belong to You are applied to the payment of contributions for pension insurance, which youll need one day when youre looking for a pension. about this later. income you report included in the base year for calculation of annual personal income tax, so if you exceed the prescribed limit, you are required to submit and annual PPDG-5 form. It is a border of about 1 500th 000.00 RSD - 15000 euros - earned during the year. If you have earned so much then go ahead and pay an accountant to give you all this done, -. Kidding , We are looking at in another article, and to explain. So follow kakopediju.: - Thats it, I help you cope on their own. Just kidding, you probably know this all seems complicated and you do not know what to with all those percentages, gross and net, OPO PP-M and UN patterns, that true accounts to be paid and so on ... So I will explain in this example step by step how to get to the numbers that you have to pay the state.
Assuming that you are employed and have a sufficient level of qualifications for performing work of authorship, and sell you your copyrighted work - code, design, etc. - the calculation is as follows: Well take the example that you have received a check from a company in the amount of $ 100 . Cheques will be sent to a bank and wait until it credit to your bank account. sure to ask your banker that you print a statement for the day when you have the amount credited to the account. On the day of posting a note of what was the exchange rate, and to the official middle exchange rate of the National Bank of Serbia. If we assume that the ratio RSD value was 100 € / currency, for ease of calculation, so we conclude that the dinar equivalent waiting for equal 10th 000.00 RSD and to represent the initial data to fill the form here OPO PP remove empty PP OPO and print the form, and here an example completed form for this case. The header OPO PP form than their directories - name, address, social security -, and fill out the following:
posting date of check in your foreign currency account type of income generated : circle the number 2 - Income from royalties and related rights and industrial property income is paid out: circling the ordinal number 1 - the payment to a bank account - enter your name and number of your bank account - fill in the following table: 1 Achieved income, enter the amount in column: 10 000 3rd Realized income is taxed, the amount column, type: 10 000 4 1 Normalized cost - 3 x 43% -: 10 000.00 RSD * 43% = 4 . 300.00 RSD. in the Amount column enter: 4th 300 5th taxable income - the tax base: 10 000.00 RSD - 4 300.00 RSD = 5 700.00 RSD. In the fifth column of the amount, type 700 6th Accrued income tax - 5% x 20 -: 5 700.00 RSD * 20% = 1 140.00 RSD. in the Amount column, type 1 140, and column public revenues account account number - explanation is down -. This is the figure you pay the Tax Office as a tax on earnings. eighth paid income tax in the amount column enter: 1 140 9th basis of contributions for compulsory social insurance in the amount column, type: 5 700 10 . first contribution to the pension fund: 5 700.00 RSD * 22% = 1 254.00 RSD, enter the amount in the first column 254, and column public revenues account account number - the explanation is down -. This figure is you pay the Administration of Public Revenues for pension and disability insurance. 10th second contribution for health insurance - These are filling and you only pay if you are not employed -: 5 700.00 RSD * 12.3% = 701 RSD, enter the amount in column 701 in column public revenues account account number - the explanation is down -. This is the figure you pay to walk the Directorate of Public Health Insurance, once again, only if you are not employed. / ul Voila, when reduced to a line at the end of your stay: 10th
000.00 RSD-Gross - 1 140.00 RSD-tax - 1 254.00 RSD-PIO - 606.00 RSD = 7 - NET -.
Expressed as a percentage of net = 76.06% of the gross, that is, the state went to 23.94% or a quarter of your income. If you are still employed, then subtract those 701 RSD for health insurance. This example applies to a payment from the USA, since with it the Republic of Serbia no agreement avoidance of double taxation or social security agreement. For Canada is a little different because it is the Serbian Republic of former Yugoslavia, which is the same with her successor to have some agreements, which are still applicable. For this, I really have no exact information, and the best ask for if you pay a company from Canada. scrambles never end, because we talk about the other payment accounts, or how to complete the final payment and pay the state what was hers. Look at the moment only payment accounts as our country has. Madness , is not it? Well, Ill kilometers from the account set aside the right ones that we need:
Explanation: The first pair was calculated for the employees - you will need two slips - the second pair is for those who have their act but from the self-employed - just two slips - and the third series of accounts for the unemployed - have one more account of health and payment should be 3 -. As for the amount you enter on the payment slip, they have already calculated the OPO PP form. But if the still have a problem with calculating and completing the form, then just walk away because I put the solution in the form of templates that will automatically do the calculations and show how to fill out the form table. Here is the template for those who report income as copyright, and here for those who to report as part of the contract. You just have to document in the appropriate field, enter the amount you received as a payment to your account in dinars at the average exchange rate NBS. Now that you know which accounts and how much to pay for all expenses, the rest is just to specify the reference number that you enter on the payment slip below the account number to which you are paying. reference number must be entered so that your payment was pravlilno entered in the books under your data in the appropriate municipality. Believe it or not, and there is a formula. Open the calculator to calculate check digit in it, type:
municipality - Select Municipality seat of your employer if you are employed by the company and the municipality where you live, if you count the number of calls for payment of health insurance if you are unemployed.
PIN - Check the PIN option, since you do not need to calculate the firm - PIB - but individual
Number - Tax Identification Number - This field type in your ID number - 13 digits - Crawling, indexing, click 97. The right side will appear a complete call number for you to enter the payment when the payment. Do not forget to enter the payment slip and model 97 in the field prior to the call number. reference code will look something like your mother 56 021 number - in which 56 021 is variable depending on the municipality for which you calculate -. Finally make payments. And heres the final example of how to fill money order: posted a. If you are employed
b. If self-employed doing
c. If you are unemployed Believe it or not, we stayed two steps. The first is a little easier, and that is to take your PP OPO completed form in duplicate to the tax administration, and the other is to complete the M-UN form in duplicate and submitted to the nearby RFPIO. Here are instructions for completing this document: Here
remove an empty UN-M form, a completed example here. In this case I will not explain how he filled in for you based on the examples that I be put clearly into everything. Youll definitely have to go to the local branch of RFPIO so that they may tell you the exact numbers should write to finish filling out their version of the form, because the numbers vary from branch to branch. When you go to RFPIO just looking for the submission of counter-M UN forms and do not forget to take with you to inspect certified OPO PP-form, and proof of payment of contributions and tax - Remittance -. / Ul Given that I am employed and it is already paid for my health insurance based on another my job, I am not obliged to pay again this expenditure and the payment I receive from abroad. Therefore, this step did not examine the details and I can not tell you much about it. I can only, to you, you Bourse, advise everyone that after the payment and delivery of PP-OPO form going into the local branch of the social and health insurance and ask them to explain what is required to do so they recorded your payment and start the process for your health insurance and you will be eligible for a health card for medical treatment in state institutions. Thats it. No more. You have fulfilled all their obligations to the state and you can sleep peacefully. All documents - contracts, bank statement, money order, certified OPO PP-M and UN patterns - which are sure to keep your left, you never know whether and when you need it. If you one step from the instructions are not clear, ask in a comment.
legal entity - a company or entrepreneur
Around receiving remittances as a legal person, also Im not qualified to give more detailed instructions because I had no experience in this field, but this is a short procedure. For more details, I suggest that you consult with your accountant or the appropriate agency. If you have a firm, from your bank you will get a notification on received money from abroad, which you must answer whether you agree or not. For incoming payments from foreign companies from a legal person is required to issue an invoice is issued or before the payment, so she paid the same. The invoice must contain all elements required by law, even if it never physically delivered to the payer abroad. An account that you have made or issued, you are obliged to report the Foreign Exchange Inspectorate of the Ministry of Finance within 30 days from the date of the bill, any mail or electronically - via e-mail -. If sent by mail, you must first fill out a form and certify, and deliver them to the Government sealed the registry - the main entrance Nemanjina 22-26 -. The specified account are required to record on its books at the middle exchange rate in relation to the specified currency on the date of invoice.
Companies and entrepreneurs who keep books by double-entry bookkeeping, and surrender his accountant to do it for them entrepreneurs who run the company by a simple bookkeeping and entrepreneurs who are paying lump sum tax, / seduce the same in his book revenues for that fiscal year / ul The above account increases assets for a given fiscal year to increase the base for the calculation of income tax of 10% for a given fiscal year. Money paid themselves over pay / royalties / service contracts / costs of the firm / lift interim dividends / raising dividends if the company with its taxes and contributions, depending on the type of payment. In the case of entrepreneurs as the founders of raising salaries or expenses of the business / personal expenses of the founder. The procedure also has further complicated if the income comes from some of the countries with which the Republic of Serbia has signed an agreement / agreements on avoidance of double taxation. Oh, finally we came to an end. Honestly, I did not expect that it will take much user pay income taxes on the Internet. Now I understand why people are hard to come by this information and why to avoid paying taxes. So for something like this need to attend a course or hire an agency to implement. Understand it, if unclear, so feel free to ask questions in the comments. Good luck. Finally, we disclaim any responsibility for the instructions that I wrote. I wrote it from personal experience since I visited and informed of all the official institutions in the country. But no matter, to be sure, it may be better to you once again ask the taxpayers in their Tax Office. You never know whether something else to make up: -. In any case write down their experiences in the comment. SavetiPo law you are required to calculate and pay tax on income and contributions from abroad if the recipient is an individual and these are funds received from family members, and the revenues earmarked for health and obraznovne purposes. In these cases, the state should prove the relationship with the sender or the purpose of funds. UpozorenjaUputstvo apply at your own risk. I disclaim any responsibility and any advise you to first consult your tax inspector, because experience has shown, that each inspector in our state law differently interpreted and implemented. Maybe you get information that does not need to pay tax.
This question is unclear to many, especially the web entrepreneurs who for various tasks over the Internet receive payments from foreign companies, whether in the form of checks - Google Adsense etc. - Or direct deposit to foreign currency accounts - various affiliate programs, company or even pay the electronic wallet MoneyBookers, AlertPay etc. -. Since I read many forums on the various comments, I decided that I explore what is actually true and that you should pay and what expenditures are actually billed the state for work to perform over the Internet. When I gathered enough information, I went to the Tax Administration in order to confirm the facts and be sure to do the right thing.